Convenience stores shifting to delivery and pick-up

Convenience store franchises are expanding their specialized services following a rise in demand for delivery services.

BGF Retail’s CU on Monday announced it will deliver products from its stores 24 hours per day, starting next month. Using the delivery app Yogiyo, CU currently delivers products from 11 a.m. to 11 p.m.

The company said the change is a response to increased demand for delivery services in recent months as more consumers opt to purchase items online to minimize human to reduce coronavirus transmissions.

Average daily orders for the company’s delivery service increased by 73.2 percent for the month of March, compared to the averages from November through January. The hours between 8 and 11 p.m. accounted for 34 percent of all orders this month, the company said.

GS25, which currently offers delivery service via Yogiyo, Vroong and Coupang Eats, also plans to expand its service to 24 hours.

GS25’s delivery sales jumped 89.9 percent from the first week of March to the following week. Delivery sales rose by a further 39.2 percent the following week, according to the company.

A spokesperson for the company said the most popular items most recently are bottled water and instant foods.

GS25 announced Monday it is starting a refrigerated pickup service in a collaboration with salad delivery operator FreshCode. Customers who order salad online are able to pick it up at a GS25 store they designate. When the package arrives at the convenience store, the customer receives a text and a QR code with a password, which they will need to pick up the stored food.

7-Eleven, which operates a beta delivery service at 10 stores, said its delivery orders surged 50 percent in February compared with January.

The retail industry’s online sales in February jumped 34.3 percent from one year earlier, while offline sales dropped by 7.5 percent, according to Ministry of Trade, Industry and Energy.

Discount marts and department stores were hit particularly hard, while convenience store franchises and supermarkets like Lotte Super and Homeplus Express experienced an 8.2 percent increase in sales. Groceries accounted for a whopping 92.5 percent of the online sales surge.

Overall retail sales in February grew 9.1 percent.

BY JIN MIN-JE [jin.minji@joongang.co.kr]